yes, and no problems at all. Gotta mate who was running them with 265/70x17's which are just under 32" and everyday around town no problems thou he had some minor rubbing offroad. he didnt want to trim mudflaps and the like so its up to you what you want to do and what you will use the vehicle for.
if lifted, 275/70 x 17 will be fine too, equal to 32.3" thou 285/70x17's I have heard off the prado forums rubb on the spingle near the top, so another offset wheel would have to be used for that size. unless you want to run a spacer which would work fine, thou may be illegal, but the bigger tyres would be illegal anyway, so how much you give a damn is your own perogative. (would look tough thou)